ICoA Conference Proceedings The 3rd International Conference on Agro-Industry 2016 “Competitive & Sustainable Agro-Industry: Value Creation in Agribusiness” Volume 2017 Conference Paper Factors Determining the Prices of Thai silk: A Hedonic Price Analysis Pacharaporn Supavitarn and Apichaya Lilavanichakul Department of Agro-Industrial Technology, Faculty of Agro-Industry, Kasetsart University 50 Ngamwongwan Rd., Lad Yao, Chatuchak, Bangkok 10900, Thailand Abstract This paper aims to analyze factors determining the prices of Thai silk products by using the hedonic price model. A quantitative and qualitative approach were used to obtain the data of silk products. Findings from statistical estimated coefficients indicated that many factors were importance to Thai silk producers and related to consumers willing to pay for a premium price for some attributes. The results showed that the location of retail store, types of business model, and online distribution channel were factors Corresponding Author affecting to price setting with a positive impact. The negative factors determining the Apichaya Lilavanichakul prices were normal silk fabric (without the Royal peacock logo) and the variety of
[email protected] the product. The outcomes suggest that producers of Thai silk fabric should use the Received: 25 December 2017 location of store, the business model, and the distribution channel as advantages of a Accepted: 5 February 2018 Published: 1 March 2018 product differentiation strategy to adding value to silk products. Publishing services provided Keywords: Royal Peacock Brand; Thai Silk; Hedonic Price Model; Utility by Knowledge E Pacharaporn Supavitarn and Apichaya Lilavanichakul. This article is distributed under the terms of INTRODUCTION the Creative Commons Attribution License, which Thai silk is a product related to culture heritage, folk wisdom, and local lifestyle for a permits unrestricted use and redistribution provided that long time, which has become one of the symbols of Thailand.